The German cabinet has blocked the planned sale of Volkswagen's gas turbine division to a Chinese company. The country does this citing security considerations.
Blocking an agreement with China
In June 2023, MAN Energy Solutions, part of the Volkswagen Group, has announced plans to sell its gas turbine business to China's state-owned CSIC Longjiang GH Gas Turbine Co.
However, a German government review launched in September raised concerns that China can use gas turbines to power warships.
Please note! GHGT is owned by China State Shipbuilding Corporation, which dominates China's shipbuilding industry.
MAN Energy Solutions said it respects the government's decision and will begin a structured process of winding down new gas turbine development.
For reference! The decision was made against the backdrop of growing trade tensions between the EU and China . Germany's economy ministry could review and halt transactions that could have national security implications as Berlin and the EU try to reduce risks from economic ties with Beijing.